THE COURT OF TAX APPEALS OF THE PHILIPPINES

Creation, Elevation and Expansion

The Court of Tax Appeals (CTA) was created on June 16, 1954, through the
enactment of Republic Act No. 1125 (R.A. 1125). Considering its limited jurisdiction
then, it had only three (3) Judges, which at present is equivalent to one (1) Division.
With the passage of Republic Act Number 9282 (R.A. 9282) on April 23, 2004, the
CTA became an appellate Court, equal in rank to the Court of Appeals. The
composition of the Court increased to six (6) Justices with one (1) Presiding Justice
and five (5) Associate Justices. It shall sit En Banc, or in two (2) Divisions with three
(3) Justices each. A decision of a division of the CTA may be appealed to the CTA En
Banc, and the latter's decision may further be appealed by verified petition for
certiorari to the Supreme Court.
However, Republic Act Number 9503 was enacted on June 12, 2008 and took effect
on July 5, 2008. This further enlarged the organizational structure of the CTA by
creating a Third Division and providing for three (3) additional Justices. Hence, the
CTA is now composed of one (1) Presiding Justice and eight (8) Associate Justices.
The CTA may sit en banc or in three (3) divisions with each division consisting of
three (3) Justices. The CTA, as one of the Courts comprising the Philippine Judiciary,
is under the supervision of the Supreme Court.
Expanded Jurisdiction
Through the enactment of Republic Act No. 9282, the jurisdiction of the CTA has
been expanded to include not only civil tax cases but also cases that are criminal in
nature, as well as local tax cases, property taxes and final collection of taxes.
Pursuant to the provisions of Republic Act No. 1125 and other laws prior to R.A.
9282, the Court of Tax Appeals retains exclusive appellate jurisdiction to review by
appeal, the following:
1. Decisions of the Commissioner of Internal Revenue in cases involving
disputed assessments, refunds of internal revenue taxes, fees or other
charges, penalties imposed in relation thereto, or other matters arising under
the National Internal Revenue Code or other law or part of law administered
by the Bureau of Internal Revenue;
2. Decisions of the Commissioner of Customs in cases involving liability for
customs duties, fees or other money charges; seizure, detention or release of
property affected; fines, forfeitures or other penalties imposed in relation
thereto; or other matters arising under the Customs Law or other law or part
of law administered by the Bureau of Customs [Rep. Act. No. 1125, (1954),
Sec. 7];

3. In automatic review cases where such decisions of the Commission of

Customs favorable to the taxpayer is elevated to the Secretary of Finance
(Sec. 2315, TCC); and
4. Decisions of the Secretary of Trade and Industry, in the case of nonagricultural product, commodity or article, or the Secretary of Agriculture, in
the case of agricultural product, commodity or article, in connection with the
imposition of the Anti-Dumping Duty, Countervailing and Safeguard Duty
[Republic Act Nos. 8751 and 8752, (1999) Sec. 301 (a) and (p), and Republic
Act 8800].
Under Republic Act Number 9282, the CTA's original appellate jurisdiction was
expanded to include the following:
1. Criminal cases involving violations of the National Internal Revenue Code and
the Tariff and Customs Code;
2. Decisions of the Regional Trial Courts (RTC) in local tax cases;
3. Decisions of the Central Board of Assessment Appeals (CBAA) in cases
involving the assessment and taxation of real property; and
4. Collection of internal revenue taxes and customs duties the assessment of
which have already become final.
<chanrobles>
The Court of Tax Appeals was created under Republic Act No. 1125. It is a special
court of limited jurisdiction. Republic Act No. 9282 expanded the jurisdiction of the
Court of Tax Appeals, elevating its rank to the level of a collegiate court with special
jurisdiction and enlarging its membership.
The Court of Tax Appeals (CTA) is now of the same level as the Court of Appeals,
possessing all the inherent powers of a Court of Justice, and shall consist of a
Presiding Justice and five (5) Associate Justices. The incumbent Presiding Judge and
Associate Judges shall continue in office and bear the new titles of Presiding Justice
and Associate Justices. The Presiding Justice and the most Senior Associate Justice
shall serve as chairmen of the two (2) Divisions. The additional three (3) Justices
and succeeding members of the Court shall be appointed by the President upon
nomination by the Judicial and Bar Council. The Presiding Justice shall be so
designated in his appointment, and the Associate Justices shall have precedence
according to the date of their respective appointments, or when the appointments
of two (2) or more of them shall bear the same date, according to the order in which
their appointments were issued by the President. They shall have the same
qualifications, rank, category, salary, emoluments and other privileges, be subject
to the same inhibitions and disqualifications, and enjoy the same retirements and
other benefits as those provided for under existing laws for the Presiding Justice and
Associate Justices of the Court of Appeals.cralaw

The Presiding Justice and Associate Justices shall hold office during good behavior,
until they reach the age of seventy (70), or become incapacitated to discharge the
duties of their office, unless sooner removed for the same causes and in the same
manner provided by law for members of the judiciary of equivalent rank."
The CTA may sit en banc or in two (2) Divisions, each Division consisting of three (3)
Justices.cralaw
Four (4) Justices shall constitute a quorum for sessions en banc and two (2) Justices
for sessions of a Division: Provided, That when the required quorum cannot be
constituted due to any vacancy, disqualification, inhibition, disability, or any other
lawful cause, the Presiding Justice shall designate any Justice of other Divisions of
the Court to sit temporarily therein.cralaw
The affirmative votes of four (4) members of the Court en banc or two (2) members
of a Division, as the case may be, shall be necessary for the rendition of a decision
or resolution.cralaw
The CTA shall have a Clerk of Court and three (3) Division Clerks of Court who shall
be appointed by the Supreme Court. No person shall be appointed Clerk of Court or
Division Clerk of Court unless he is duly authorized to practice law in the Philippines.
The Clerk of Court and Division Clerks of Court shall exercise the same powers and
perform the same duties in regard to all matters within the Courts jurisdiction, as
are exercised and performed by the Clerk of Court and Division Clerks of Court of
the Court of Appeals, in so far as the same may be applicable or analogous; and in
the exercise of those powers and the performance of those duties they shall be
under the direction of the Court. The Clerk of Court and the Division Clerks of Court
shall have the same rank, privileges, salary, emoluments, retirement and other
benefits as those provided for the Clerk of Court and Division Clerks of Court of the
Court of Appeals, respectively.cralaw
No Justice or other officer or employee of the CTA shall intervene, directly or
indirectly, in the management or control of any private enterprise which in any way
may be affected by the functions of the Court. Justices of the Court shall be
disqualified from sitting in any case on the same grounds provided under Rule one
hundred thirty-seven of the Rules of Court for the disqualification of judicial officers.
No person who has once served in the Court in a permanent capacity, either as
Presiding Justice or as Associate Justice thereof, shall be qualified to practice as
counsel before the Court for a period of one (1) year from his retirement or
resignation.cralaw
The CTA shall have its principal office in Metro Manila and shall hold hearings at
such time and place as it may, by order in writing, designate.cralaw
The CTA shall exercise jurisdiction as follows:chan robles virtual law library

a. Exclusive appellate jurisdiction

provided:chanroblesvirtuallawlibrary

to

review

by

appeal,

as

herein

1. Decisions of the Commissioner of Internal Revenue in cases involving disputed

assessments, refunds of internal revenue taxes, fees or other charges, penalties in
relation thereto, or other matters arising under the National Internal Revenue or
other laws administered by the Bureau of Internal Revenue;
2. Inaction by the Commissioner of Internal Revenue in cases involving disputed
assessments, refunds of internal revenue taxes, fees or other charges, penalties in
relations thereto, or other matters arising under the National Internal Revenue Code
or other laws administered by the Bureau of Internal Revenue, where the National
Internal Revenue Code provides a specific period of action, in which case the
inaction shall be deemed a denial;
3. Decisions, orders or resolutions of the Regional Trial Courts in local tax cases
originally decided or resolved by them in the exercise of their original or appellate
jurisdiction;
4. Decisions of the Commissioner of Customs in cases involving liability for customs
duties, fees or other money charges, seizure, detention or release of property
affected, fines, forfeitures or other penalties in relation thereto, or other matters
arising under the Customs Law or other laws administered by the Bureau of
Customs;
5. Decisions of the Central Board of Assessment Appeals in the exercise of its
appellate jurisdiction over cases involving the assessment and taxation of real
property originally decided by the provincial or city board of assessment appeals;
6. Decisions of the Secretary of Finance on customs cases elevated to him
automatically for review from decisions of the Commissioner of Customs which are
adverse to the Government under Section 2315 of the Tariff and Customs Code;
7. Decisions of the Secretary of Trade and Industry, in the case of nonagricultural
product, commodity or article, and the Secretary of Agriculture in the case of
agricultural product, commodity or article, involving dumping and countervailing
duties under Section 301 and 302, respectively, of the Tariff and Customs Code, and
safeguard measures under Republic Act No. 8800, where either party may appeal
the decision to impose or not to impose said duties.cralaw
b.
Jurisdiction
over
cases
involving
provided:chanroblesvirtuallawlibrary

criminal

offenses

as

herein

1. Exclusive original jurisdiction over all criminal offenses arising from violations of
the National Internal Revenue Code or Tariff and Customs Code and other laws
administered by the Bureau of Internal Revenue or the Bureau of Customs:
Provided, however, That offenses or felonies mentioned in this paragraph where the

principal amount o taxes and fees, exclusive of charges and penalties, claimed is
less than One million pesos (P1,000,000.00) or where there is no specified amount
claimed shall be tried by the regular Courts and the jurisdiction of the CTA shall be
appellate. Any provision of law or the Rules of Court to the contrary
notwithstanding, the criminal action and the corresponding civil action for the
recovery of civil liability for taxes and penalties shall at all times be simultaneously
instituted with, and jointly determined in the same proceeding by the CTA, the filing
of the criminal action being deemed to necessarily carry with it the filing of the civil
action, and no right to reserve the filling of such civil action separately from the
criminal action will be recognized.
2. Exclusive appellate jurisdiction in criminal offenses:chanrobles virtual law library
a. Over appeals from the judgments, resolutions or orders of the Regional Trial
Courts in tax cases originally decided by them, in their respected territorial
jurisdiction.
b. Over petitions for review of the judgments, resolutions or orders of the Regional
Trial Courts in the exercise of their appellate jurisdiction over tax cases originally
decided by the Metropolitan Trial Courts, Municipal Trial Courts and Municipal Circuit
Trial Courts in their respective jurisdiction.cralaw
c. Jurisdiction over tax collection cases as herein provided:chanrobles virtual law
library
1. Exclusive original jurisdiction in tax collection cases involving final and executory
assessments for taxes, fees, charges and penalties: Provided, however, That
collection cases where the principal amount of taxes and fees, exclusive of charges
and penalties, claimed is less than One million pesos (P1,000,000.00) shall be tried
by the proper Municipal Trial Court, Metropolitan Trial Court and Regional Trial Court.
2. Exclusive appellate jurisdiction in tax collection cases:chanrobles virtual law
library
a. Over appeals from the judgments, resolutions or orders of the Regional Trial
Courts in tax collection cases originally decided by them, in their respective
territorial jurisdiction.
b. Over petitions for review of the judgments, resolutions or orders of the Regional
Trial Courts in the Exercise of their appellate jurisdiction over tax collection cases
originally decided by the Metropolitan Trial Courts, Municipal Trial Courts and
Municipal Circuit Trial Courts, in their respective jurisdiction.cralaw
The Court shall have the power to administer oaths, receive evidence, summon
witnesses by subpoena duces tecum, subject in all respects to the same restrictions
and qualifications as applied in judicial proceedings of a similar nature. The Court
shall, in accordance with Rule seventy-one of the Rules of Court, have the power to

punish for contempt for the same causes, under the same procedure and with the
same penalties provided therein.
Who May Appeal; Mode of Appeal; Effect of Appeal. Any party adversely affected
by a decision, ruling or inaction of the Commissioner of Internal Revenue, the
Commissioner of Customs, the Secretary of Finance, the Secretary of Trade and
Industry or the Secretary of Agriculture or the Central Board of Assessment Appeals
or the Regional Trial Courts may file an appeal with the CTA within thirty (30) days
after the receipt of such decision or ruling or after the expiration of the period fixed
by law for action as referred to in Section 7(a)(2) herein.cralaw
Appeal shall be made by filing a petition for review under a procedure analogous to
that provided for under Rule 42 of the 1997 Rules of Civil Procedure with the CTA
within thirty (30) days from the receipt of the decision or ruling or in the case of
inaction as herein provided, from the expiration of the period fixed by law to act
thereon. A Division of the CTA shall hear the appeal: Provided, however, That with
respect to decisions or rulings of the Central Board of Assessment Appeals and the
Regional Trial Court in the exercise of its appellate jurisdiction appeal shall be made
by filing a petition for review under a procedure analogous to that provided for
under rule 43 of the 1997 Rules of Civil Procedure with the CTA, which shall hear the
case en banc.cralaw
All other cases involving rulings, orders or decisions filed with the CTA as provided
for in Section 7 shall be raffled to its Divisions. A party adversely affected by a
ruling, order or decision of a Division of the CTA may file a motion for
reconsideration of new trial before the same Division of the CTA within fifteen (15)
days from notice thereof: Provide, however, That in criminal cases, the general rule
applicable in regular Courts on matters of prosecution and appeal shall likewise
apply.cralaw
No appeal taken to the CTA from the decision of the Commissioner of Internal
Revenue or the Commissioner of Customs or the Regional Trial Court, provincial, city
or municipal treasurer or the Secretary of Finance, the Secretary of Trade and
Industry and Secretary of Agriculture, as the case may be shall suspend the
payment, levy, distraint, and/or sale of any property of the taxpayer for the
satisfaction of his tax liability as provided by existing law: Provided, however, That
when in the opinion of the Court the collection by the aforementioned government
agencies may jeopardize the interest of the Government and/or the taxpayer the
Court any stage of the proceeding may suspend the said collection and require the
taxpayer either to deposit the amount claimed or to file a surety bond for not more
than double the amount with the Court.cralaw
In criminal and collection cases covered respectively by Section 7(b) and (c) of this
Act, the Government may directly file the said cases with the CTA covering amounts
within its exclusive and original jurisdiction.cralaw

Appeal to the Court of Tax Appeals En Banc. No civil proceeding involving matter
arising under the National Internal Revenue Code, the Tariff and Customs Code or
the Local Government Code shall be maintained, except as herein provided, until
and unless an appeal has been previously filed with the CTA and disposed of in
accordance with the provisions of this Act.cralaw
A party adversely affected by a resolution of a Division of the CTA on a motion for
reconsideration or new trial, may file a petition for review with the CTA en banc.